Tesla Inc. TSLA has reportedly halted production of its Optimus line of humanoid robots.
What Happened: Tesla has halted purchases of raw materials as it redesigns the hardware and software of its Optimus robot, according to sources in the company’s Chinese supply chain, Chinese media outlet LatePost reported on Wednesday (Translated from Chinese).
The report suggests that Tesla had purchased enough materials to produce 1,200 robots and produced over 1,000 units, much lower than Elon Musk‘s target of 5,000.
Tesla did not immediately respond to Benzinga’s request for comment.
The halt comes as Tesla reportedly told the suppliers the company would need at least two months to determine the production and purchase plan as it determines the redesigns to Optimus, the Chinese supply chain sources said.
The redesigns come as Ashok Elluswamy took over the reins of the Optimus line, the report said. Currently, according to the sources, the Optimus robots carrying batteries in the battery workshop are proving to be less efficient than the workers.
Tesla told the suppliers that some of the joint motors overheat and the battery life is relatively short, the report said, as Tesla provided feedback to its suppliers.
Why It Matters: The report comes even as Wedbush Securities‘ Dan Ives reiterated Tesla’s lead in the robotics segment. Ives said that the sector has a chance to be bigger than the company’s autonomous driving tech due to its scale.
Nvidia Corp NVDA CEO Jensen Huang had earlier said that the Optimus robot could be the first humanoid robot to achieve the tech scale and high volume needed to further the robotics sector. “I think this is likely to be the next multi-trillion-dollar industry,” Huang said.
However, Palantir Technologies Inc.‘s PLTR Peter Thiel says Musk’s vision of a billion humanoid robots in a decade in the U.S. seems not “thought through.”
The production for Optimus had hit a snag earlier in the year as China’s crackdown on rare earth metals exports posed supply chain issues for Tesla and its robotics ambitions.
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